Victoria will not let developers deduct rezoning costs from the windfall gains tax, denying them tens of millions and threatening the federal goal of 1 million homes. The tax takes up to 50 per cent of land value gains above $100,000. UDIA president Maxwell Shifman called the decision misguided.
As I told the Australian Financial Review: “It would be a very misguided approach to take at a time when from the federal level we're talking about the need to deliver 1 million homes over the next five years … and do it in a way that's also affordable”
I also said: “By disallowing deductions it will mean landowners and developers are unwilling to take on the very significant task of environmental or geotechnical or the other remediation they take the risk up front to [prepare] a site for development. It's not worth it for them to take the risk.”
Australian Financial Review, 23 February 2023 — Read the full article